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JCURVE SOLUTIONS LTD — Capital/Financing Update 2015
May 27, 2015
65158_rns_2015-05-27_e63d01b7-154f-49d5-88bd-2993b3736ac2.pdf
Capital/Financing Update
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28 May 2015
Manager of Company Announcements ASX Limited Level 6, 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement
SALE OF JCONNECTS BUSINESS
As announced at the 2014 Annual General Meeting (“AGM”) and in the presentation released to the ASX on 27 November 2014, JCurve Solutions Limited (“JCS”) planned in 2014/15 to exit its JConnects IBM Reseller business.
JCS wishes to advise it has now executed a Sale Agreement to exit its IBM Reseller business through the sale of the entity which conducts this business, Resources Systems Pty Ltd.
The Sale Agreement has been executed, with an effective transfer date of 1 June 2015 and a combined consideration of $10,000 cash, net working capital at 31 May 2015 and prepaid service income estimated at $30,000 at 31 May 2015.
As noted in the AGM Presentation, the JConnects business was a declining revenue business, with low margins and producing marginal profitability and cashflow for the Company.
The exiting of this business will allow management and working capital to be fully applied towards the Company’s main business operations, being JCurve, Jtel and Full Circle.
For and on behalf of the Board
Mr Bruce Hatchman Non-Executive Chairman